Find Out How To Cut Your Costs On Car Insurance

Nobody wants to be charged more for car insurance that they must. Sure, car insurance is necessary in most states, and even in the states where having it is not a state law, it is still a very good idea to carry it. However, the key to maximizing the car insurance you have without stretching your billfold to the breaking point is to ensure that you are neither OVER insured nor UNDER insured, and finding where that balance is can be a difficult task. That is, it can be tough if you do not put the essential research into it.

This article will provide several tips and methods you can apply to lower your car insurance premiums while still keeping enough coverage to protect you and your vehicle.

Figure out how much you drive per year. Many car insurance policies are issued assuming that the driver is going to put 12k to 15k miles annually on their car, but do you drive much less than that? If so, some insurance companies offer a low mileage discount if you can truthfully state that you drive less than about 7500 miles each year.

Utilizing your car for business purposes can be a great tax deduction but you are going to pay for it via your car insurance. Does your employer pay you a car allowance each month? Do they pay you mileage each month? If not, then they probably have no "vested interest" in your car and you may not have to say that you use it for business to your insurance company, since an additional charge might be added if you tell them you do.

What figures are you applying for your various deductibles? Remember, you have a deductible for collision, another one for comprehensive, perhaps even another one for fire, and these do not need to be the same figure. The deductible is the amount that you pay out of your wallet if you file a claim. Naturally you do not want to file a claim, but notice that you can save a lot by increasing your deductibles from say $250 to $500, or from $500 to $1000.

What does your credit report have to do with car insurance? A great deal these days, as increasingly car insurance companies are beginning to use the data on a customer's credit report to find their credit score and adjust their premiums consequently. The insurance companies claim to have statistical evidence that says that individuals with low credit scores make more claims. Although there are various consumer advocacy groups that are disputing this finding, many insurers are doing this, therefore it is in your best interests to watch your credit report and determine that there are not incorrect entries on it, and that your credit score is as high as it can be so that your premiums will be as low as possible.

Safeguard your car and keep it maintained. Some insurers offer additional deductions if your car is equipped with air bags, anti lock brakes, and an alarm system. If those features did not come from the factory installed on your car, it may be an economically good decision to have them put in if you can get deductions on your insurance as a result.

In all likelihood the single most important thing you can do to reduce your car insurance is to shop around. Compare rates and policies, both online and offline, but ensure you are actually comparing apples to apples when comparing policies, since a great deal may have a $2000 deductible and no theft coverage, which does not make it a deal in the least.




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